Prospects for the Russian market of forestry equipment

Russia is among the top 5 countries both in terms of logging volumes and roundwood production. That is why the Russian market of logging equipment is considered to be one of the most promising. Let us take a look at its current state, problems and development prospects.

Key market indicators

The annual volume of the Russian market of forestry equipment is estimated by experts at about 40 billion rubles. It consists of three main segments - harvesters (feller bunchers), forwarders (transportation machines) and universal forestry machines. The latter account for more than 60% of the total market volume. On average, the annual growth of the Russian market of forestry equipment is 12%.

A peculiarity of the Russian market of forestry machinery is a significant share of imported machines. In some segments (e.g. harvesters) it exceeded 90%. Such a trend dates back to the times of the USSR, when machinery was purchased in Japan and Finland. Manufacturers from these countries (Ponsse, Komatsu), as well as American companies (Caterpillar and John Deere) held leading positions in the Russian market until February 2022. At the same time, these companies did not launch full-cycle production of their equipment during the entire period of their work in Russia, sales and service were carried out through dealer networks.

After February 2022, the trends in demand for forestry equipment have changed. While in the first six months buyers sought to maximize their choice of leftovers of previously delivered equipment of the brands that had gone away, as they were exhausted, the demand vector shifted towards Russian, Belarusian and Chinese products.

The share of Russian equipment differs depending on the segment. While in the segment of timber trucks the positions of Ural and KAMAZ trucks are strong and practically unshakable due to the combination of cross-country ability, structural strength and moderate cost, the share of domestic products is minimal among harvesters and forwarders. At the same time, the departure of Finnish, Japanese and American manufacturers has opened a window of opportunity for Russian and foreign companies.

What hinders the development of the segment?

Difficulties in finding alternative models. In conditions when a number of manufacturers suspended their activities on the Russian market, quite a few forestry companies faced the need to find alternative models. In addition to their functionality, the ability to integrate such equipment into production processes, not to mention maintenance, also plays an important role. At the same time, if Russian manufacturers feel confident in the segment of inexpensive whip logging machines, their positions in more expensive classes are not so strong yet.

Difficulties with supplies of consumables and spare parts. The departure of some foreign companies has resulted not only in a decrease in the variability of supply. No less significant problem is the supply of consumables and spare parts. Some products require original components, which under current conditions can be supplied only through parallel imports.

What consequences can the above barriers lead to? The most global one is a decrease in timber production, which in turn will negatively affect a number of sectors of the economy - construction, furniture, pulp and paper and other industries.

Forestry equipment market growth points

The launch of production of new models. Now Russian manufacturers of forestry equipment found themselves, in fact, in front of a “blue ocean” of opportunities. The departure of competitors has allowed to occupy those segments that were previously occupied by Finnish, Japanese and American equipment. At the same time, domestic players of the logging industry are ready to support the Russian manufacturer, if only they would sooner release the products meeting the demands of the target audience. Probably, within the next 2-3 years we should expect a serious strengthening of the positions of Russian equipment. Moreover, there are already successful cases of cooperation: for example, the Amkodor-Onego plant in Petrozavodsk is soon going to reach its design capacity of more than 500 units of machinery (forwarders and harvesters) per year.

State support measures. Previous crises have demonstrated the importance of interaction with the state, which is ready to support business in a difficult moment. A number of measures have already been launched: soft loans, subsidies, provision of land plots for construction of enterprises on favorable terms. However, they concern mainly manufacturers, practically not affecting the buyers of their products. Therefore, leasing programs with subsidies from the state, as well as preferential loans for the purchase of Russian equipment are becoming especially important.

The ”Logging machines” section at Woodex 2023 was visited by 996 people (12% of the total number of visitors). In 2025 in this section you can present: skidding equipment, motorized chain saws and their accessories, cranes and timber grapples, skidding rope and other equipment.